Z Energy to raise up to $NZ900m in float

Z Energy plans to raise up to $NZ900 million ($A791.56 million) in an initial public offering, allowing owners Infratil and the New Zealand Superannuation Fund to crystallise some of their profits on the three-year investment.

The petrol station chain's indicative price range is between $NZ3.25 and $NZ3.75 a share, giving an implied market capitalisation of between $NZ1.3 billion and $NZ1.5b, and making it the 15th or 16th biggest company on the New Zealand stock exchange.

Wellington-based Z won't retain any of the funds raised in the August sale.

It will offer between 113m and 130m of new shares worth some $NZ422.4m to repay funds owed to shareholders and pay for their shares of NZ Refining, according to its prospectus filed with the Companies Office on Thursday.

Infratil and the NZ Super Fund will also sell between 40 per cent and 50 per cent of their existing shares in the chain, pulling out between $NZ228m and $NZ478m.

They paid just under $NZ700m in 2010 when they acquired the Shell service stations as part of a larger acquisition of the energy group's downstream New Zealand assets.

"Z Energy has been a very good investment for Infratil and while an initial public offering will see us reducing our holding, we will still have a significant investment after the proposed IPO," Infratil chief executive Marko Bokoievski said in a statement.

The IPO returns are in addition to the $NZ50m special dividend to Infratil and the NZ Super Fund announced earlier this month.

The offer document forecasts operating earnings of $NZ219m in the 2014 financial year and $NZ104m in the first half of 2015.

Net profit is expected to be $NZ115m in 2014, and $NZ50m in the first half of 2015. The directors expect to declare a dividend of $NZ88m in the 2014 financial year, implying a gross dividend yield of 8.1 to 9.4 per cent.